PROPOSED ROAD USER CHARGING SYSTEMS - ESTONIA 12.06.2007 Estonian Road Administration Ylle Karjane

Main topics Estonian roads and financing The priorities of road management Road Development programmes The questions to solve Future plans about PPP and Road User Charging Ylle Karjane 12.06.2007

Ylle Karjane 12.06.2007

Helsingi, Finland Estonia Latvia Estonia Population – 1,4 million Road Network – 57 025 km Ylle Karjane 12.06.2007

Estonian Road Network Main roads Basic roads Secondary roads Local roads Basic roads Secondary roads Main roads Estonian Road Network Road Network in Total – 57 025 km National Roads – 16 479 km Local and private roads – 40 546 km Ylle Karjane 12.06.2007

The Basis of Financing Estonian Roads Road Act Jan, 2006 last amended, new changes planned Depends on the prognosis of the fuel tax 75% of fuel tax can be used on roads, except special marked fuel, of it – 25% Distribution of road finances For local roads - since 2006 10 % of road finance since 2007 15 % of road finance For national roads – other part of 75 % Overview of the prognosis Ylle Karjane 12.06.2007

Financing of roads (spring 2007, MEEK) 2464 2711 Ylle Karjane 12.06.2007

State Revenues in Total 2006 2007* 2008* RealizarionTäitmine State Budget Prognosis spring 2007 Prognosis sept 2006 Fees 55 208,9 60 170,1 63 438,1 67 014,5 71 638,3 Personal Income Tax 3 846,4 3 188,5 3 310,0 3 300,0 3 435,0 Corporate Income Tax 3 123,4 3 485,0 4 020,0 3 700,0 4 715,0 Social Benefits Tax 21 746,4 24 715,5 25 460,0 27 420,0 28 910,0 Heavy cargo Tax 61,2 63,0 65,5 66,0 68,8 V.A.T. (value added Tax) 18 645,1 20 600,0 22 060,0 23 485,0 24 830,0 Excises 7 030,1 7 325,6 7 615,6 8 213,5 8 655,5 Alcohol 2 089,8 2 145,0 2 300,0 2 438,0 2 630,0 Tobacco 1 208,1 1 255,0 1 295,0 1 328,5 1 425,0 Fuel Tax 3 728,9 3 925,0 4 446,5 4 600,0 Tare/Package Tax 2,9 0,6 0,5 Gambling Tax (HMN) 354,7 365,0 455,0 384,5 525,0 Toll 401,7 427,5 452,0 445,5 499,0 Mittemaksulised tulud 12 640,8 15 740,5 14 805,5 17 912,2 18 891,1 Revenues - Total 67 849,7 75 910,6 78 243,6 84 926,7 90 529,4 Now Prognosis State Revenues Million EEK / MEUR Fuel Tax 251 MEUR 294 MEUR 4852 MEUR 5786 MEUR State Revenues in Total Ylle Karjane 12.06.2007

Fuel tax in the State Budget in 2007-2008 2007 year State Budget – 76 billion EEK / 4,9 bEUR Fuel tax – 3,9 billion EEK / 251 MEUR / 5,1 % Financing of National Roads – 2,4 bEEK / 157,5 MEUR ; 3,1% For National Roads from State revenues - 2,0 bEEK / 130 MEUR / 2,6% 2008 prognosis* State Budget – 90 billion EEK / 5,9 bEUR Fuel tax – 4,6 billion EEK / 294 MEUR / 5,1 % Financing of National Roads – 2,8 bEEK / 180 MEUR ; 3,1% *march 2007 – new prognosis is under preparation, comes in june - august 2007 Ylle Karjane 12.06.2007

Million EEK Ylle Karjane 12.06.2007

Financing in 2004 - 2007 Million EUR Ylle Karjane 12.06.2007

The priorities of road management in Estonia Priorities determine the order of the importance of road works: Maintenance of national roads; Repairs of international main roads (projects related to EU assistance); Preservation of the existing pavements Surface dressing Repairs of gravel roads; Repairs of the pavements on main and basic roads and repairs of bridges; Paving the gravel roads. Ylle Karjane 12.06.2007

Maintenance of national roads Ylle Karjane 12.06.2007

Repairs of international roads E20 Maardu-Valgejõe section (CF Assistance) Ylle Karjane 12.06.2007

Preservation of the existing pavements - Surface dressing Ylle Karjane 12.06.2007

Repairs of the pavements on roads / Repairs of bridges and Paving the gravel roads Ylle Karjane 12.06.2007

Results – Average age of pavements Estonia Main roads Basic roads Secondary roads Ylle Karjane 12.06.2007

REPAIRS OF PAVEMENTS Ylle Karjane 12.06.2007

Ylle Karjane 12.06.2007

Ylle Karjane 12.06.2007

The purpose of Road Development Programme (RDP) to give for public and for road users an overview of planned works on the road network. to create comfortable, safe and saving traffic conditions for all road users. Ylle Karjane 12.06.2007

Accepted Road Development Programmes in 2001 – 2006 By this period by Goverment are accepted – 4 RDP: 2001 - National Road Development Programme for 2001 – 2006 Accepted by Government 03.07.2001, No 489-k; 2002 - Long-term Road Development Programme for 2002 – 2010 Accepted by Government, regulation 27.08.2002, No 550-k, Was cancelled previous RDP; 2004 - Road Develpoment Programme for years 2004 – 2006 Accepted by Government, regulation 25.02.2004 No 112-k; Was cancelled previous RDP... 2006 – The last accepted by Goverment RDP for years 2006 – 2009 is accepted by Goverment in 31.05.2006 By this period 3 of them was cancelled - Why? Today - 2007 - preparation New RDP for years 2007-2011 To solve some important questions Ylle Karjane 12.06.2007

Traffic accidents 1991-2005 Ylle Karjane 12.06.2007

Main Questions to solve in Future Priority for Road Users is - Tallinn- Tartu E 263 road Why imortant? One of the main connections in Estonia (Tallinn – Tartu) Traffic density is high; Traffic Accidents Tallinn- Tartu E 263 road Reconstraction plan for 2006-2014 - nearly 7 billionEEK Ressources from State Budget - limited Financing only from Fuel Tax? Limited Possibilities to solve PPP Loans State revenues Political Desision – use loans or PPP? Not decided yet (.....june - august) Result - to give comfortable and safe traffic conditions for Road Users 447 MEUR Ylle Karjane 12.06.2007

Kose - Mäo First PPP project? E263 - Tallinn – Tartu km 40,0 – 85,0 In Total – 45 km new road Preparation: 2007-2009 Project period: 2009-2010 Construction period: 2010 - 2012 Total : 1500 Million EEK ~ 96 MEUR Ylle Karjane 12.06.2007

Traffic Density of Tallinn- Tartu-Võru- Luhamaa road E263 Ylle Karjane 12.06.2007

E263 Tallinn – Tartu – Võru – Luhamaa Kose – Mäo road section km 40,0- 85,5 45 km new road If use PPP – DBFO – design-built-finance-operate Chadow toll method Ylle Karjane 12.06.2007

Road User Charging – in future SAAREMAA FIXED LINK Ylle Karjane 12.06.2007

Saaremaa Fixed Link The population of Saare County ~ 35 000 Turists, visited Saaremaa per year – 300 000 on the average every day crossed the Suur Strait ~3600 travellers ~1310 cars Predicted increace in traffic 5,5% a year - if use ferry 25-28% the year, when posssible opening of a fixed link Ylle Karjane 12.06.2007

Saaremaa Fixed Link 1997 – Initiated by Saare County Goverment 2000 – Pre-feasibility Study 2003 – Formed an expert Committee in Estonia 2005 – Economic and environmental analysis 2006 – the strategic environmental impact assessment - initiated by MKM, arranged by ERA 2007-2011 – preparation , pre-project 2012-2015 - Construction Opening …… tolls Ylle Karjane 12.06.2007

The questions to solve Participants Financing method state, entrepreneurs, banks, EU assistance Financing method How to prepare the contract of financing so, that all participants be involved and contented Technical solution – bridge or tunnel Public opinion What is more important for road users Ylle Karjane 12.06.2007

Thank You!

Ylle Karjane 12.06.2007

Contacts Ylle Karjane Estonian Road Administration Phone +372 611 9351 Head of the Development and Programme Department Phone +372 611 9351 GSM +372 515 9572 E-mail Ylle.Karjane@mnt.ee Ylle Karjane 12.06.2007

Ylle Karjane 12.06.2007